QUESTION 1 Gemilang Enterprise is a merchandising company which has business operations in Cyberjaya. The following balances have been extracted from the books as at 31 December 2020 Cash in hand Cash at bank Accounts Receivable Accounts Payable Shop Premises Mortgage on Premises Capital Rates Expense Inventory as at 19 January, 2020 Sales and Purchases Advertising Expense Interest on mortgage Insurance on premises Cash Register Goodwill Discounts Allowed and Discounts Received Shares in Amanah Saham Bumiputera (ASB) Dividends-Shares in Amanah Saham Bumiputera (ASB) Salaries Expense General and Administrative Expense Selling and Distributive Expense Equipment Trade Marks Sundry Expenses Debit (RM) Credit (RM) 1,000 2.000 5,000 20,000 250,000 60,000 100,000 8,000 2.000 200,000 600,000 8,000 8,000 24,000 5,000 16,000 1,000 3.000 60,000 6,000 118.000 16,000 19,000 28.000 10,000 8,000 789,000 789,000 Additional information: 1. Inventory as at 31 December 2020 was valued at RM4,000. 2. Advertising expense of RM1,000 was unexpired. 3. Insurance expense of RM2,000 was prepaid. 4. Interest on mortgage of RM1,000 was still owing 5. General and administrative expenses of RM3,000 was paid in advance. 6. Selling and distributive expenses of RM5,000 was not yet paid. Continued... 7. RM2,000 of the sundry expenses are not yet used. 8. Salaries of RM2,000 were not paid. 9. Dividends from shares in Amanah Saham Bumiputera (ASB) amounting to RM1,000 was yet to be received Required: a) Prepare the statement of profit or loss for the year ended 31 December 2020. (15 marks) b) Prepare the statement of financial position as at 31 December 2020. (10 marks) (Total: 25 marks)